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Firm-Level Hiring Difficulties: Persistence, Business Cycle and Local Labour Market Influences

Richard Fabling and David Maré

No 7534, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We examine the correlates of reported hiring difficulties at the firm level using linked employer-employee and panel survey data over 2005-2011, focussing on the relative influence of firm-level characteristics, persistence, the business cycle and local labour market liquidity. At both the aggregate and the firm-level, hiring difficulties eased after the onset of the Global Financial Crisis. Even in the presence of large cyclical changes in demand and labour market conditions, firm-level persistence is a dominant feature of the data, with one- and two-year lags of reported hiring difficulties both positively related to current difficulties. Firms paying higher wages are more likely to report difficulties when trying to hire skilled workers, while firms with more long tenure workers are less likely to report any difficulty hiring. Local labour market conditions appear unrelated to reported hiring difficulties.

Keywords: Global Financial Crisis; local labour market; hard-to-fill vacancies; hiring difficulties (search for similar items in EconPapers)
JEL-codes: E24 J23 J63 M51 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2013-07
New Economics Papers: this item is included in nep-bec, nep-cse, nep-lab, nep-lma, nep-mac and nep-spo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Journal of Labour Research, 2016, online first (DOI 10.1007/s12122-016-9221-8)

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Related works:
Journal Article: Firm-Level Hiring Difficulties: Persistence, Business Cycle And Local Labour Market Influences (2016) Downloads
Working Paper: Firm-level Hiring Difficulties: Persistence, Business Cycle and Local Labour Market Influences (2013) Downloads
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